Piraeus bank Q2 profit up on higher net interest income

ATHENS (Reuters) - Piraeus Bank, Greece's third-largest lender by market value, on Monday reported higher net earnings for the second quarter from the same period last year on a rise in net interest income.

Greek banks are benefiting as the country's economy rebounds from a decade-long debt crisis and the COVID-19 pandemic. The government sees growth at 2.3% this year, from 5.9% in 2022, on higher consumer spending, strong tourism and investment.

Greek banks hope to pay out dividends in 2024 for the first time since 2010, when the country's debt crisis erupted.

Piraeus Bank, 40% owned by the country's HFSF bank rescue fund, reported net earnings of 120 million euros ($132 million) from 92 million euros in the same quarter last year.

Net interest income reached 461 million euros from 266 million euros a year ago, it said. The group's non-performing loan exposure ratio (NPE) improved to 5.5% of its total loan portfolio from 9.3% in the second quarter of 2022.

($1 = 0.9071 euros)

(Reporting by Lefteris Papadimas; Editing by Mark Potter)